Sound Planning Group CEO David Stryzewski discusses the state of the stock and bond markets amid reporting that the White House could cut China’s tariffs with “The Big Money Show.”
President Donald Trump said the sinking US stock market after volatile fluctuations in bond markets earlier this month is not the reason to implement a 90-day tariff suspension on U.S. trading partners.
“I wasn’t worried,” Trump said in an interview with Time magazine, discussing the pressures faced by the bond market after announcing new tariff plans at the “liberation day” announcement at the White House Rose Garden.
The bond market, a traditional safe haven supported by the full faith and credibility of the US government, has rarely seen a major shaking, but this month has been one of the biggest short-term moves to date, with Treasury yields falling slightly around April 4th, exceeding 4.5% by April 11th. It brings trade back to prices.
Around this time, Trump also trolled Federal Reserve Chairman Jerome Powell, calling him “Mr. Too late,” hinting that he would fire him for not cutting interest rates that contributed to volatility. However, he has since said he has not intended to fire him.
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Increased yields will result in higher borrowing costs, particularly over a decade, which will determine mortgages and car loans.
On Friday, it reached 4.267%. The Ministry of Finance has fluctuated between about 3.59% and 4.81% over the past 12 months.
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At the same time, the stock sank from record highs, but later recovered some of these losses. The S&P 500 left the corrections field this week and rebounded from a 10% drop. Still, the Dow, S&P and Nasdaq have fallen from record highs of 5.7%, 10% and 6%, respectively, through Friday.
“The bond market was getting YIPS, but I wasn’t, because I know what we have. I know what we have, but I also know that even if I allow another four years of significant incompetence, we don’t have it for a long time. This thing was just running – it was running as a free spirit. Trump told Time Magazine. See the Biden administration.
In his April 2nd statement, Trump used the Poster Committee to show the sum of tariffs, other non-tariff barriers and currency manipulation by US goods trading partners, along with mutual tariffs the Trump administration plans to impose on imports from those countries. The administration later revealed that the calculations included US trade deficits with these countries.
President Donald Trump holds the “mutual tariffs” chart as he speaks during the “U.S. Wealthy” trade announcement event at Rose Garden at Washington, D.C., on April 2. (Chip Somodevilla / Getty Images / Getty Images)
The 90-day suspension is Trump’s goal of re-adjusting tariffs, not by the bond market turmoil.
“No, that wasn’t for that,” he said. “I do it until I come up with the numbers I want to come up with. I met many countries. I spoke on the phone.
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Regarding trade talks, Trump on Friday provided an update on his meeting with Chinese President Xi Jinping. “I’ve told him many times,” he said. Pope Francis’ funeral.
“I’m doing very well with Japan. We’re very close to the deal,” he added.
